Newmark released its second quarter 2020 industrial trends data for the Detroit region this week.
The metro Detroit industrial market vacancy climbed 40 basis points to 4.4 percent during the second quarter of 2020, as just over 1.6 million square feet in net vacancies were added to the market. The bulk of the metro area vacancies came from Art Van’s 1.0-million-square-foot facility in Warren following the company’s bankruptcy. With stay-at-home measures and a near-stop to most business activity, the industrial market was mostly quiet during the quarter. However, in wake of the COVID-19 crisis, developers are seeing a new market opportunity as the demand in the e-commerce industry is expected to grow, as people could be reluctant to shop at traditional brick-and-mortar stores. New construction for bulk warehouse jumped 50 percent to 4.3 million square feet during the second quarter. In addition, Amazon continues to expand its presence by taking more space in Macomb County.
“The industrial market is evolving in the wake of this pandemic. The 50 percent jump in new construction for bulk warehouse reflects how the e-commerce market is going to play an even greater role in how consumers obtain goods,” said Fred Liesveld, managing director of Newmark’s Detroit office. “At the same time, the market is seeing vacancies climb as smaller industrial properties struggle to weather the storm.”
See the full report for submarket-specific summaries here: https://www.ngkf.com/storage/uploads/documents/2Q20-Detroit-Industrial-Market.pdf
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